Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

CUSTOMER AND SUPPLIER CONCENTRATION

v3.10.0.1
CUSTOMER AND SUPPLIER CONCENTRATION
12 Months Ended
Sep. 30, 2018
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block]
NOTE 14 – CUSTOMER AND SUPPLIER CONCENTRATION
 
Significant customers and suppliers are those that account for greater than 10% of the Company’s revenues and purchases.
 
The Company sold a substantial portion of products to one customer (
21.1
%) in 2018 and as of September 30, 2018, the amount due from this customer included in accounts receivable was $9,507,491. The Company sold a substantial portion of products to one customer (
14.9
%) in 2017 and as of September 30, 2017, the amount due from this customer included in accounts receivable was $3,459,882. The loss of the significant customer or the failure to attract the new customers could have a material adverse effect on our business, results of operations and financial condition for the Company.
 
The Company purchased a substantial portion of materials from three third-party vendors (
62.4
%) in 2018. As of September 30, 2018, the net amount due to the vendors (accounts payable - advance to vendors) was -$5,787,900, where negative number means net advance paid to the vendors. In 2017, the Company purchased a substantial portion of materials from three third-party vendors (
63.5
%). As of September 30, 2017, the net amount due to the vendors (accounts payable - advance to vendors) was $9,139,161.
The Company believes there are numerous other suppliers that could substitute the current significant vendors should they become unavailable or non-competitive.